I knew SWA was hedging fuel costs in the futures market. They are now hedging the potential costs of free flights in the Rapid Rewards program. The best we could hope for is to pay huge airfares for a number of years and then have oil drop back down to $30 a barrell. Not too likely given that we have passed peak oil.
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I've always wondered how SWA would hedge their fuel costs vs a free flight sitting in a customer's account. I knew they were in the futures market, now its been added to rapid rewards.
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